Sectors: 1064

Guernsey's AIFMD regime sees first non-financial asset depositary launch

22 April 2014

Gentoo Depositary Services Limited has been licensed by the Guernsey Financial Services Commission (GFSC) as the first non-financial asset depositary under the AIFMD Rules, 2013.

The establishment of Gentoo Depositary Services will allow fund managers the ability to choose a depositary that is familiar with both the domestic regulatory regime and the private equity asset class in order to manage the additional regulatory pressures of the EU's Alternative Investment Fund Managers Directive (AIFMD). Whilst it is possible to appoint an EU depositary for a non-EU AIF, Gentoo believes that the ability to offer a Guernsey-based service provider may help support the geographic residency of Guernsey funds.

Mark Hooton, Director, commented: "Through the continued regulatory development and by continuing to evolve our service offerings we aim to continue the success of Guernsey as the jurisdiction of choice for private equity fund managers."

EU AIFMs marketing a fund to EU investors will require a depositary to be appointed. Gentoo can, through the provision of both administration and functionally separate depositary services, provide a more fluid and integrated offering from a team with many years experience of private equity and other alternative asset classes.

Guernsey has responded to AIFMD by creating a dual regulatory regime, allowing managers the ability to 'opt in' to the AIFMD Rules in order to demonstrate equivalent compliance with the requirements of AIFMD in anticipation of the extension of the marketing passport to third-countries. Such an 'opt in' will apply in relation to a relevant AIF, allowing a manager to apply equivalence to an AIF opting in, but at the same time be out of scope for a parallel vehicle that is marketed to non-EU investors.

Back to News
Download Find a related practitioner